Re: Authorized Users and Credit Scoring?

Re: Authorized Users and Credit Scoring?

devon22ou wrote:

Hello

I have a similar question about adding authorized users to an account. This is my first time doing this. I have tried to find answers online and even asked credit cards directly and have been given contradicting answers.

I, today, just added an authorized user to an Old Navy Visa credit card. I was told by a representative that the information from this credit card would be reflected on the authorized users credit report. When I asked how this could happen when they were only given a name, the person could not answer my questions so she transferred me to a supervisor. The supervisor then told me that as of 2011, account/credit card information IS NOT reflected on an authorized user's credit report. So, which is true?

I am hoping to assist in building the authorized user's credit score. I will not allow them access to the card, but I will be monitoring (approving) purchases and making sure payments are made on time.

I also read somewhere that whether or not account information is reported to the AU's credit report is up to the credit card peoples.

Can someone help me understand? If I am not able to help their credit score, I have no reason to have them as an authorized user. Thank you in advance for your help!

YMMV on the CC. Some report on one, two, or three of the CRAs, and some not at all. It depends on the creditor.

When you are added as an AU, all they need is your name. Somehow through all-seeing super-banking eyes, they somehow know where to report. I know it seems weird that they wouldn't need a SSN, but virtually all AUs only need a name and yet they report. If they do report, the entire TL will show exactly as if it were own accounts, except that it says "authorized user" within the responsibility field. The history, good or bad, the balance, the CL, the acct number, and everything else will still show within your reports.

Just remember, if granting AU status, if they rack up a zillion dollars in purchases, you are responsible for those payments. Be sure you make the payments, not them. Have them pay you. And for goodness sakes, limit AUs to immediate family (e.g. spouse, kiddo).

Re: Authorized Users and Credit Scoring?

Thank you! I will try to see if that particular card has been discussed here to see if they report AU's. I am very strict with my cards and my credit is important to me so I will most definitely take your advice!

Re: Authorized Users and Credit Scoring?

llecs wrote:

devon22ou wrote:

Hello

I have a similar question about adding authorized users to an account. This is my first time doing this. I have tried to find answers online and even asked credit cards directly and have been given contradicting answers.

I, today, just added an authorized user to an Old Navy Visa credit card. I was told by a representative that the information from this credit card would be reflected on the authorized users credit report. When I asked how this could happen when they were only given a name, the person could not answer my questions so she transferred me to a supervisor. The supervisor then told me that as of 2011, account/credit card information IS NOT reflected on an authorized user's credit report. So, which is true?

I am hoping to assist in building the authorized user's credit score. I will not allow them access to the card, but I will be monitoring (approving) purchases and making sure payments are made on time.

I also read somewhere that whether or not account information is reported to the AU's credit report is up to the credit card peoples.

Can someone help me understand? If I am not able to help their credit score, I have no reason to have them as an authorized user. Thank you in advance for your help!

YMMV on the CC. Some report on one, two, or three of the CRAs, and some not at all. It depends on the creditor.

When you are added as an AU, all they need is your name. Somehow through all-seeing super-banking eyes, they somehow know where to report. I know it seems weird that they wouldn't need a SSN, but virtually all AUs only need a name and yet they report. If they do report, the entire TL will show exactly as if it were own accounts, except that it says "authorized user" within the responsibility field. The history, good or bad, the balance, the CL, the acct number, and everything else will still show within your reports.

Just remember, if granting AU status, if they rack up a zillion dollars in purchases, you are responsible for those payments. Be sure you make the payments, not them. Have them pay you. And for goodness sakes, limit AUs to immediate family (e.g. spouse, kiddo).

Do a search in here to see if that given card reports AUs.

Thanks,I will also be looking into Chase to see if they report AUs on the Freedom.

Re: Authorized Users and Credit Scoring?

if i'm added on to an account as an AU will the history of the account go on my report? if the account has been opened for 10 yrs and I'm added, will it show on my report as a 10 yr old account or will it show as a 1 month old account lowering my average age of accounts? thank you

Re: Authorized Users and Credit Scoring?

Paperboy999 wrote:

if i'm added on to an account as an AU will the history of the account go on my report? if the account has been opened for 10 yrs and I'm added, will it show on my report as a 10 yr old account or will it show as a 1 month old account lowering my average age of accounts? thank you

If added as an AU, and assuming the CC reports AUs, then you'll have the full benefit of the balance, CL, open date, payment history, etc., as a 10-yr TL on your CR(s).

Re: Authorized Users and Credit Scoring?

Looking for some advice:

I have added someone as an authorized user on one of my cards. I am not allowing them to have their own card but am monitoring their monthly payments (I used my own card to make the purchase). I have considered adding them as an authorized user to may two other accounts that have been open for several years and have a decent credit limit. I will do the same thing, which is not allow them to have their own card or even make purchases on the account, but I have considered doing this solely to help their credit score.

Would this be a good idea or a bad idea? Also, what could happen if or when they are removed as an authorized user?

Re: Authorized Users and Credit Scoring?

devon22ou wrote:

I have considered doing this solely to help their credit score.

Would this be a good idea or a bad idea?

I think it's a bad idea for you to add someone as an authorized user on one of your cards solely to help their credit score. It's taking advantage of a loophole, and it's not much different from humans feeding wild animals. There's one exception, which is the authorized user being a spouse in a household of joint income. That's just my take on it, but a potential lender may notice all of this when looking into the person's financial background. I'm sorry I can't be any nicer about this!

Would you mind if I ask where you have obtained the three scores in your signature? As myFICO doesn't offer EX, it could be they are not all FICO scores.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation.
Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies.
Many factors affect your FICO Scores and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating.
FTC's website on credit.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.